Three Ways to Learn How to Own a Business

8 January 202113 June 2022by Enes ÖnerLeave a Comment

Most of the successful business owners have learned to be a business owner by working in companies. This is a form of on the job training. Those who pass family professions on from generation to generation raise their children in the same way. Unfortunately, very few people can get this type of education.

For those who don’t have the chance to work in companies, there are several ways to learn how to own a business.

Management training programs are prepared only to train CEOs. Learning to own a business is something different.

Those who want to have a business firstly follow the path of being self-employed. Most people cannot skip this stage. Because they cannot develop a solid system. So, they become part of a system. Successful business owners have been able to develop systems that operate on their own.

Here are three ways to pass the path and become a business owner:

Finding a Mentor

A mentor is someone who has followed the same paths and has achieved success. Mentor and counselor are different. The counselor tells the client what to do and how. However, they often have no experience in the area they advise. The number of consultants who teach how to be a business owner or investor is quite high. I suggest that you follow the advice of those who have tried and succeeded. If you don’t know someone who owns a business, find and read the biographies, interviews, books or articles of those people.

You need to learn systems and leadership. Not being a CEO. CEOs may tend to belittle their subordinates, but leaders are aware that they often lead people who are smarter and more talented than them.

I strongly recommend you to read Michael Gerber’s E-Myth Mastery. It’s a unique book to learn the basics of building your own business system.

Probably the traditional way to learn systems is to study undergraduate in economics. In this way, accounting knowledge is acquired and the relationship between company systems and finance is learned. But of course, undergraduate education in the department of economics does not provide business knowledge that will enable to create and build a proper company order.

In order to learn all the systems of a company, it is necessary to work for at least 10-15 years in a large company and learn different aspects of a business. Then you stop being an employee and become a business owner. Working in a company with good systems is like getting paid from your mentor.

Franchising

Another way to learn about systems is to buy franchises. When you buy a business franchise, you are purchasing a system that has been proven to be successful. With a good market research, you can find a lot of very good franchises in the market.

When you purchase franchise instead of setting up your own system, you have more time to train your employees. By purchasing a system, you eliminate one of the uncertainties on the way to own a business. It will also make it easier for banks to lend you money. Normally, they don’t like giving credit to a startup small business. However, banks are aware of the impact of systems on success and know that the risk is reduced when a franchise is purchased.

In order for a business to be sustainable and grow, there must be a harmony in its system. Failure of only one unit leads to crash of the entire system. For example, if the fuel system of an airplane in flight fails, the plane is likely to crash even if everything else is fine. A problem in a person’s circulatory system can cause that person to die, even if all other systems work well. This rule is the same for companies.

Buying a proven system allows you to learn about unknown or overlooked factors. This is why professional investors tend to support those who will use systems that have proven to work.

Network Marketing

Network marketing is also known as multilevel marketing or pyramid selling. In the beginning, network marketing businesses were deemed illegal as well as franchises. In some countries, those who set up network marketing were penalized. New systems or new ideas may seem strange and suspicious at first.

Many people have been able to build successful network marketing companies. These people have changed the lives and financial situations of many other people thanks to their business. This makes the network marketing system even more valuable. It is possible to become a customer of an established system and starting a business with very reasonable fees. Those who start their businesses thanks to the marketing network don’t suffer from the difficulties of establishing small businesses in traditional ways.

If you’re thinking of starting your own business, you can also check out these posts:

Why Nine-tenths of Enterprises Fail

7 December 202013 June 2022by Enes Öner1 Comment

“The beginning is the most important part of the work.”
Plato

All business owners and even employees should think big and make plans for expansion. In order to start a job, a strong reason, in other words a source of motivation, is required. This part requires thinking big, and unfortunately most people fail at this step.

Ray Kroc, unlike most people, was able to think big and realize his plans. He got into the hamburger business. But if he had chosen another business, he would probably have done well there too. Many small business owners tend to keep their business small. Ray Kroc developed a system for his small business, then expanded his hamburger business into a huge company.

The triangle below is the one that Robert T. Kiyosaki often emphasizes in his books. The purpose of this triangle is to help focus thoughts and teach the eight main topics that will make a business successful.

Statistics show that, nine out of ten businesses fail in the first five years. Nine-tenths of businesses that can continue for more than five years end before they see the tenth year. Here is the 90/10 rule of money again.

Many business ventures fail because at least one of the eight sections in Kiyosaki’s triangle is weak or lacking in these ventures.

A Business Needs A Very Strong Mission to Be Successful

In the triangle, the “product” is uppermost; but it has the smallest area. The “mission” is at the bottom but is one of the three items with the largest area. Mission is at the base of the triangle. Undoubtedly, the most important item in this triangle is mission.

I’ve heard a lot of people who want to be entrepreneurs say, “I have a great idea.” These great ideas sometimes have a chance to come true. The world is full of great products that have failed. This is because the base of the triangle is not strong. When you ask those who want to be entrepreneurs about their mission, most of them answer you: “I’ll make money!” If the focus is on making money rather than enterprise, the result is likely to be disappointing.

Mission is the most important thing to the business. Mission is the soul and heart of a business. The lack of Mission, means the lack of power to tackle tough road to tread.

When the most successful businesses studied, you’ll see a well-based and solid triangle. Their mission is motivating, leadership is well executed, managers are competent and work in harmony, cash flow and finances are good, sales and marketing communication are effectively provided, the system established for employees works efficiently, legal documents and contracts are clear and understandable, and of course the product produced – as a result of all of them – very good.

The System Is a Major Difference Between Small Businesses and Big Businesses or Companies

Most of us can make more delicious burgers than McDonald’s burgers. But how many of us can build a better system? The system is a crucial difference between small businesses and big businesses. In small businesses, the owner of the business is the system itself. Things don’t work out in his absence. Many businesses operate in this way depending on people.

Big businesses and companies operate on their well-designed systems. Employees or leaders can change over time. However, thanks to the system, the same process continues. McDonald’s works the same all over the world.

When businesses with well-educated, high-salary, hardworking employees who still achieve little are analyzed, it is seen that these businesses depend on people. A system has not been developed for these enterprises. Even a business with well-educated and highly paid employees will fail unless there are well-functioning systems.Entrepreneurs are the people who have to build great racing cars. CEOs are the pilots of those cars. A great pilot can’t win a race with a bad car. There are very few people who produce racing cars and become their drivers at the same time. Bill Gates, Michael Dell and Steve Jobs are such people. We’ve seen these guys all building and driving excellent racing cars.

You may also read my THE DIFFERENCE BETWEEN YOUR WORK AND YOUR BUSINESS post if you are interested.

Check out these posts:

Which Path Are You More Inclined To? (Employee, Self-Employed, Employer or Investor)

6 November 202013 June 2022by Enes Öner3 Comments

To earn money, we must be an employee, self-employed, employer or investor. Of course, we can be a few of these at the same time. We mentioned about that. Let’s look at these four ways to make money in more detail. Thus, we will see the characteristics of the people who tend to take each path.

Employee

When I hear the words “assurance” or “side income,” I get an idea of who the person is actually speaking. The word “assurance” is a sign of fear. There are many who hate the fear that comes with economic uncertainty. Employees frequently use the concept of assurance when they are afraid.

The concept of “side income” refers to a defined additional income besides the wage received, such as a health plan or individual pension. The important thing here is the desire of employees to feel safe and to see something on the document. Uncertainty doesn’t make them happy; they seek certainty. They say, “I’ll give you this… but in return, promise to give me that.”

Employees want to reduce their fears. They want assurance and solid agreements when it comes to employment. When they say “Money doesn’t concern me.” they say it right.

For them, assurance is more important than money.

Employees can be senior managers or janitors. It doesn’t matter what they do, what matters is the employment contract they signed with the institution they work for.

Self-employed

These are those who want to “be their own boss” or “do their own business.”

They’re tight when it comes to money, and they don’t like their income dependent on others. If a self-employed person works hard, they want to pay off. They do not like to be determined by someone else or someone who does not work as hard as they do. If they work well, pay them. No, if they don’t do their job well, they will understand that they have to get as much as they deserve. They have a completely independent spirit when it comes to money.

This group includes well-educated “professionals” such as doctors and lawyers who have spent their years studying.

Most self-employed people are perfectionists. They want their work to be very good. According to them, nobody but themselves can do the best. They don’t believe that no one can do a job the way they want to. These people are artists in their own field and they do their work in their own way.

That’s why we become their customers. For example, you will go to a dentist, you want her to be well trained and experienced in her field. But more importantly, you pay attention to her being a perfectionist. You show the same care for hairdressers, marketing consultants, plumbers, electricians, lawyers or trainers. Whichever self-employed you need, you look for the best in the field.

It is not easy for these people to find someone to work with, because they do not believe that there is someone who will do the job better than they do. It is not easy for these people to find someone to work with, because they do not believe that there is someone who will do the job better than they do. “I cannot find a suitable colleague to recruit,” they often complain.

They train someone and teach the business. Most of the time, the trained employee quits the job to “do his own job”, “to be his own boss” and “to go his own way”.

Employer

They can do almost anything that self-employed people do not. Real employers hire people from all four categories for their business. Unlike self-employed people who do not like to distribute work to others because they don’t think that anyone but themselves will do the job the best, real employers love to share work. The motto of these people may be “Why should I do it when I can have someone else do it?”.

Henry Ford, for example, is one such person. It is said that a group of intellectuals accused him of being ignorant. They claim that Ford is “unaware” of the world. Then Ford invites them to his office and tells them to ask him questions. Thus, these intellectuals begin to pose questions to America’s most powerful industrialist. After listening carefully to the questions, Ford reaches for the phones on his desk and calls one of his smartest assistants inside, asking him to answer the questions. At the end of the panel, he tells his guests that he is hiring smart, educated people so that he can devote time to more important tasks. His more important task is “thinking.”

Self-employed people own a business, whereas employers own the system they have set up and employ people who are qualified to run that system. Most of the time, self-employed people can’t leave their jobs. When they want to take a vacation, their income must also go on vacation. This is an important difference between self-employed people and employers. Employers can take a vacation whenever they want, thanks to the systems. When they go on vacation, the flow of money continues.

The requirements to be a successful employer can be summarized as follows:

a. Owning or controlling the system;

b. Leading people.

Investor

Investors make money from money. They don’t have to work because their money works instead.

This way is the playground of the rich. Whichever way one earns money, if one day aims to get rich, sooner or later he has to choose the investment path. This is the only way where money can be converted into wealth. And the great thing about all of this is that it is possible and easy for anyone, whether poor, middle-class or rich, to choose this path.

I recommend you to read my THE KEY TO BEING A SUCCESSFUL INVESTOR post. You may also read THE FIRST RULE OF GETTING RICH if you are interested in investing.

Here are some other posts related with investing:

Would you like to have a look at my latest posts?

Financial Attitudes, motivation, Understanding Money

Make Money in a Better Way

26 October 202013 June 2022by Enes Öner4 Comments

It Doesn’t Need to Have Money to Make Money

We know that many successful people dropped out of school without getting a degree or never went to college. General Electric founder Thomas Edison, Ford Motor Co Founder Henry Ford, Microsoft founder Bill Gates, CNN founder Ted Turner, Dell computer founder Michael Dell, Apple Computer Company founder Steve Jobs, Polo’s founder Ralph Lauren did so. Higher education is important in traditional professions, but for these men it wasn’t important in accessing great wealth since they started their own business.

So, What Do You Need?

If money isn’t needed to make money and schools don’t teach how to achieve financial freedom, then what is needed?

It is necessary to dream, to be determined, the desire to learn quickly, the ability to use God’s blessings, and to know how to earn income.

Which Way Do You Make Your Income?

An employee earns money by getting a job, working for someone else or working for a company. A self-employed person earns money by working for himself. An employer has set up a business that generates income. An investor earns money from the various investments she makes.

There are different ways to generate income. It requires different mindset, different technical skills, different learning path and different people. Different people find themselves closer to different areas.

Although money is the same everywhere, the way it is earned can be very different. Think of the different qualities required in all four ways and ask yourself which way you get the most of your income.

Each one is very different. Earning income from different segments requires different skills and different personalities, even if the person in each segment is the same. Switching from one method to another is like playing golf or tennis in the morning and going dancing at night.

You Can Earn Income in These Four Ways

Most of us have the potential to generate income in all four ways. Which one we choose has nothing to do with what we are taught at school. It is more related to our values, strength, weaknesses and interests. What kind of person we are determines how we will earn our income.

Whatever we do professionally, it is possible to earn income in these four ways. For example, suppose a doctor chooses to earn income as an employee. He can work in a hospital or a public institution. He can even become a military doctor or become a permanent doctor of one of the insurance companies.

The same man can also open a clinic and work as a self-employed. He can also choose to be an employer. He hires other doctors. He doesn’t have to work in his own polyclinic, then he can employ a administrator. If this doctor does not necessarily want to have a job in the field of health, he can also establish a company operating in a completely different sector.

He can also invest in other people’s business or other investment instruments such as stocks, bonds and real estate.

Different Methods of Generating a Source of Income

The way we earn income depends on our character. Some prefer to work for someone else, some hate it. Some people like to own a company but also like to run that company. While some people like to invest, others avoid it by citing the risk of losing money. Most of these attitudes can be found in us.

You Can Become Rich or Poor in All Four Ways

There is no clear relationship between these methods and wealth or poverty. Earning millions or being broke is up to the person himself. Choosing one way or another is not a guarantee of financial success, and no one can give you any advice.

These Methods Are Not Equal

Knowing the different features of each method is useful in understanding which one or which ones are more suitable for us.

Let’s say I choose to earn my income primarily as an employer and investor. Because I would like to take advantage of tax benefits. Legal tax privileges for groups at the top of the table are limited. On the other hand, there are plenty of loopholes regarding tax that can be used by those below in the table. If I get my income as an employer and investor, I can earn much more money in a shorter time and I will not pay high tax.

Money Supports Life

I believe it is absurd to spend a lifetime working to earn money and pretending that money is not important. Life is worth more than money. On the other hand, money is also important in terms of supporting life. We must learn to make money without working long hours. That’s when we get plenty of time to do other things.

If you take a closer look at this simple table, you will see that it contains not only different views of the world, but also very different worlds.

Neither is better than the other. Each of them has strengths and weaknesses.

Some of us can walk more than one path, maybe even all of the paths. We are all different individuals, remember, one method is not better or more important than the other. In every village, town and city of the world, all kinds of professionals are needed in order to balance the financial stability of the society.

On the one hand, our interests change as we grow older and our experience increases. For example, many young people who have just graduated from school are elated when they find a job. However, after a year or two, few find that they are not interested in rising up the corporate hierarchy or are not interested in their business. These changes that come with age and experience cause one to seek new ways to grow, challenge, achieve financial reward and achieve personal happiness…

Are you interested? Check out these posts too:

I urge you to read my DON’T WORK TOO HARD -WORK FOR YOURSELF post.

You can find my latest posts here:

investment, motivation

Make Your Investments To Earn

22 October 202013 June 2022by Enes Öner5 Comments

People have three types of investment behavior:

Not investing at all

Invest in order not to lose

Invest to earn

People who do not invest at all expect the state, the company they work for or their families to take care of them after they retire.

Those who invest in order not to lose usually choose investments that they think are safe. This group constitutes the majority of investors.

Those who invest in order to earn, turn to higher return investments. They are more willing to invest, they research and learn more about investment.

The strange thing is that all of these people, regardless of their investment attitude, have the potential to become rich.

The reason many people invest in order not to lose is because they find the investment risky and compare it to gambling. In addition, almost all of them think they need to take more risks to get higher returns. However, there is not such a direct relationship between high risk and high return.

Raising money is a really fun game. However, most people live in fear instead of enjoying this pastime. Therefore, they take their steps cautiously. They make “safe” investments, cling to social security, and live below their possible standards. Millions of them are also bogged down in debt and live paycheck to paycheck. Although these people wanted to have fun, they did not learn to invest in order to earn. Therefore, they are not considered to have actually built a good life.

The 90/10 Rule of Money

Most of us have heard of the 80/20 rule. Now I want to tell you about the 90/10 rule. This rule is an always reliable practical rule that I also apply in my own life.

Very simply, in the money game, 10% of the players get 90% of the money. We know that 10% of the world owns 90% of the current assets. 10% of real estate investors hold 90% of the investments. One-tenth of these are also the ones with the highest wealth. The 90/10 rule also applies to specialties. For example, in basketball, 10% of all professional players earn 90% of the money.

The 90/10 rule also helped me decide which area to head to. For example, the reason why I did not choose to be a basketball player was that I thought I would not be able to enter 1 in 10 in this field. If you had seen me singing, you could understand why I am not a singer.

Ask yourself in which field or industry you can enter the 10%. Do you think you are in the 10% of your current job? If not, is it because of your lack of skills in your field or something else? This short conversation with yourself in front of the mirror will give you a lot. Just make sure that no one is around you while doing this…

I recommend you to read my SEIZE THE POWER OF MONEY post.

If you interested you may also like:

“LACKING OF MONEY” FEAR
THE FIRST RULE OF GETTING RICH (It’s about investment also.)
YOU NEED TO SAVE MONEY
DON’T WORK TOO HARD -WORK FOR YOURSELF (And investments are also mentioned here.)

Check out my latests posts:

Financial IQ

Work in the Same Field But Earn More

5 October 202013 June 2022by Enes Öner8 Comments

A few days ago, my computer suddenly broke down. I immediately contacted a friend who understands electronics but is a student in a completely different field. My friend solved the problem in minutes with a video call. Listening to the sound of the case was enough for him to understand the problem. I was shocked.

The world is full of awake, resourceful, educated, and gifted people. We come face to face with them every day. On the road, in the market, in the movie theater, in the stadium… They are around us.

I am always surprised how little talented people earn. I recently heard that the proportion of Americans making $ 100,000 annually is less than 5 percent. I know smart, highly educated people whose annual income is less than 20 thousand dollars.

Someone who specializes in buying and selling medical supplies told me that doctors, dentists and physical therapists are facing financial difficulties. He said: “They are one step away from great wealth.”

Most people can manage to increase their income substantially if they add another to their skills: Financial intelligence is the synergy of accounting, investment, marketing and law. Making money is easier if you combine these four technical skills.

If my friend who helped me fix my computer had learned sales and marketing skills, his income would have grown tremendously. If I were him, I would research how I could do this business online and develop it. At the same time, I would improve myself in public relations. I would learn to reach the masses with free publicity. Ultimately, I would have more opportunity to profit from my own skills. In a short time, I would be one of the “best” in this area of expertise.

I suggest you look for jobs that will help you improve yourself. Before you decide on a particular profession and become a prisoner in a rat race, you have to decide what skills you want to learn.

Once a person gets caught up in a bill-paying cycle, they’re just like little mice spinning small metal wheels. They always run, but never go forward.

There is a lot of big talk in Jerry Maguire, in which Tom Cruise stars. Perhaps the most memorable line is: “Show me the money.” But there is another line that seems most realistic to me. The sentence Tom Cruise said when he left the company. He was fired and asked all the company members: “Who wants to come with me?”. But everyone is silent, almost frozen. A woman speaks only, “I’d love to come, but I’ll be promoted in up to three months.” she says.

Perhaps this is the most striking phrase spoken from the beginning to the end of the movie. It’s the kind of word used by people working to cover their bills. We all have someone around who studied for years and then got a job with an average salary. These people look forward to the hike they will receive each year, and they are disappointed each year.

I often ask everyone: “Where is this daily activity taking you?” I wonder if they too are looking where this hard work is taking them. What awaits them in the future?

I ask you too, do you think about your future or are you looking forward to the next paycheck without questioning where you are going?

Please let me know your situation and your thoughts below.

The Difference Between Your Work and Your Business

24 September 202013 June 2022by Enes Öner6 Comments

The education system focuses on finding good jobs for young people by developing their knowledge-based skills. It shapes the lives around the salaries. After young people develop their interest-based skills, they move up the stages of education to improve their professional abilities. They are trained to be engineers, scientists, cooks, police officers, doctors, artists, writers etc. The skills they acquire allow them to join the workforce to earn money.

If you study cooking, you will become a chef. If you study law, you will become a lawyer, if you study medicine, you will become a doctor. The misconception of working in the same branch is that people forget to look after their own business. They spend their lives working in someone else’s job and making that person rich.

There is a big distinction between your job and your business. Everyone should have their own business.

To be financially secure, one has to look after his own business. Unlike your income column, your business revolves around your active column. As mentioned earlier, the first rule is to know the difference between active and passive and have active funds. While everyone cares about their income accounts, the rich pay their attention to their active column.

That’s why we hear them all too often: “I need time.”, “Oh, if I were promoted…”, “I need to work overtime.”, “Maybe I’ll get a second job.”, “I’ll quit for up to two weeks. I found a higher paid job. ”…

These ideas still related to the income column. A person provide financial security only if she uses her additional money to acquire income generating assets.

The main reason why the poor and the majority of the middle class are financially conservative and do not want to take any risks is that they do not have financial knowledge. They have to stick to their jobs. They tend to take firm steps.

For this reason, people with low income put themselves in serious financial difficulties. They sell their assets to avoid cash shortages. They start by selling their personal possessions, but the money they get in return is lower than what is written on their personal balance sheet. If they make a profit, then they pay the tax. Thus, the state gets its share of the earnings, which reduces the amount that will save them from debt. That is why the person’s net profit may be ‘lower’ than he thinks.

Start your own business. Keep working full time, but also avoid passives or personal items that lose their true value when you bring them home. Buy real active assets. A new car loses 25 percent of the price you pay as soon as you start driving. Even if your banker says your car is your number one asset, the car is not a correct asset. A trendy $ 400 basketball shoe equates to $ 150 at the first game.

Adults need to keep their spending low, decrease their passives and patiently create active funds. Parents should teach adolescents the difference between active and passive. Before teens leave home, get married, buy a home, have children, and buy everything on credit, they must begin to have active funds. Such as stocks, bonds, income generating real estates or copyrights from intellectual works like music, writings, patents and anything else that has value, generates income, or is ready to market and increases its value…

You may want to read WORK IN THE SAME FIELD BUT EARN MORE.

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Tag: business